Homelessness has increased due to the lack of affordable housing, natural disasters, and a surge in migration. Despite economic growth, the funds allocated to solve homelessness have often been misused, and there is a systemic failure in addressing the root causes of homelessness, such as healthcare and living wages.
Point-in-time counts are often done during winter when more people are in shelters, making it easier to find them. However, these counts fail to account for the many homeless individuals who are not in shelters and are hard to locate, leading to underestimates of the actual homeless population.
There is significant evidence of mismanagement and misallocation of funds. For example, in Santa Cruz, a civil grand jury found it impossible to audit the homeless program, and in Los Angeles, an audit revealed lax accounting practices and the failure to reclaim millions in cash advances to contractors. This suggests that some officials and nonprofits are using funds for personal gain or luxury projects rather than direct solutions.
Wealthy individuals and companies often benefit from the status quo. They may invest in prisons or luxury housing developments that are subsidized by public funds intended for affordable housing. Additionally, the existence of homelessness helps suppress wages and keeps the lower class working harder and taking less for fear of losing their homes.
The housing first model is criticized for being a scam that often results in the conversion of affordable housing units to market rate after a few years. This means that while the initial project may seem like a solution, it ultimately does little to address long-term homelessness and can be seen as a money laundering scheme.
Many homeless people have formal earnings but are unable to afford housing due to high costs, bad credit scores, and lack of affordable options. For example, in Santa Cruz, a person with a job and a bad FICA score cannot qualify for housing, leading to a cycle of homelessness.
Laws have been passed in several states and cities making it illegal to live outside, which can lead to the criminalization of homeless individuals. This is often done to clear streets and neighborhoods without providing actual housing solutions, and it is frequently influenced by the Prison Industrial Complex and wealthy individuals with vested interests in these policies.
Universal healthcare would help reduce homelessness by providing necessary medical support and preventing individuals from losing all their possessions when seeking emergency care. A significant portion of the homeless population is disabled or has health care debt, and access to affordable healthcare could prevent them from becoming or remaining homeless.
Private citizens and nonprofits like Food Not Bombs are often more effective because they directly provide essential items like food, tents, and sleeping bags. In contrast, government programs and large nonprofits frequently fail to deliver tangible solutions due to mismanagement, high salaries, and a lack of accountability.
Cities and states often oppose building drug rehabilitation facilities due to public opposition and lobbying from groups that demonize the homeless. These groups argue that drug rehab facilities 'enable' drug use, despite the fact that many homeless individuals have drug addiction issues that contribute to their homelessness.
The number of homeless in the United States has grown by a third during the Biden years despite steady economic growth since the end of the pandemic. So how did this happen? Why did a rising tide not only fail to lift all boats, but now threatens to drown an even greater number of Americans living on the margins -- and under bridges, on sidewalks and in their cars?
Jimmy speaks with Food Not Bombs founder Keith McHenry about the history of homelessness, why the problem remains so entrenched in the U.S. and why purported attempts to solve it have failed so spectacularly.
Jimmy and McHenry then discuss where the tens of billions of dollars that have been allocated to solve the homelessness crisis really went since they’re obviously not being used as intended by the voting public.